SEC Investigating Taser

The SEC said it’s expanding its investigation into Taser.

The U.S. Securities and Exchange Commission has now upgraded its probe to a formal investigation, allowing it to subpoena documents. The SEC had opened an informal probe of the company over statements about the safety of its stun guns and a distribution deal struck in December 2004.
Taser also said it understands the SEC is looking into the possible unauthorized acquisition of material nonpublic information by individuals outside the company in an effort to manipulate Taser’s stock price.
Taser shares were down 8.6 percent to $6.68 Tuesday in premarket trading on the Inet electronic brokerage system.
Taser has stood by the safety of its weapons, saying the stun guns have never been named as the primary cause of death when suspects were in custody.
Taser Chief Executive Rick Smith said in a statement that he hoped the SEC probe would address “all pertinent issues,” including what he said was data indicating that “there may be a large, improper, naked short position” in the stock.

The stock is down sharply in the pre-market. The stock is down over 75% since the beginning of the year. However, Rich Smith, at the Motley Fool is still bullish on Taser.

Posted by on September 27th, 2005 at 9:19 am


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